Earnings

Teleflex Lifts Earnings Outlook To $7.50–$7.75 A Share — Tariff Refunds Help Margins

Reported quarterly sales grew just 0.2%, while business-sale proceeds funded debt repayment and share buybacks.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 3 min read
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Teleflex Lifts Earnings Outlook To $7.50–$7.75 A Share — Tariff Refunds Help Margins

Teleflex, which makes medical devices for diagnostic, critical-care and surgical procedures, lifted its 2026 adjusted earnings outlook for continuing operations to $7.50–$7.75 a share Thursday. The results release accompanying its SEC filing showed stronger quarterly profitability, helped by tariff refunds, alongside barely growing reported sales.

Tariff Refunds Help The Profit Recovery

Third-quarter adjusted earnings from continuing operations were $2.63 a share, against $1.89 a year earlier. Under standard accounting, those businesses earned $1.30 a share, reversing a $1.32 loss in the year-earlier quarter.

Adjusted operating profit represented 25% of sales, versus 22% a year earlier. That result included $16.5 million in refunds for tariffs incurred in 2026. Continuing operations also benefited from $8.8 million in refunds for 2025 tariffs, but Teleflex excluded that amount from its adjusted results.

For the full year, management now assumes an adjusted operating margin of approximately 20%, including the refunds, rather than approximately 19%. Teleflex also raised its standard-accounting earnings forecast for continuing operations to $2.84–$3.09 a share.

TFX shares fell about 1% to $150.53 in Friday trading.

Modest Growth Across A Reshaped Business

Quarterly sales from continuing operations were $567.8 million, up 0.2% as reported. Growth was 3% after adjusting for acquisitions, discontinued products, Italian reimbursement-related reserves and currency movements.

Currency changes led Teleflex to lower its reported annual sales-growth forecast to 13.2%–14.2%. Its forecast using the same acquisition, product, Italian-reserve and currency adjustments stayed at 3.5%–4.5%.

Teleflex sells hospitals and healthcare providers products including catheters, bleeding-control devices and surgical instruments. During the quarter, it replaced geographic reporting segments with three global product businesses: Vascular, Interventional and Surgical.

Vascular sales grew 4.7% as reported, or 4.6% on the adjusted, currency-neutral basis. Surgical grew 4.2% and 5.1%, respectively. Interventional sales fell 2.6% as reported but grew 0.2% on that adjusted basis; management said integration and restructuring of the acquired Vascular Intervention business continued to affect growth.

Sale Proceeds Pay Debt And Buybacks

The portfolio overhaul has also supplied cash. Teleflex completed the OEM business sale to Montagu and Kohlberg on August 3 for $1.5 billion, retaining $1.25 billion after tax. In August, it used some of the proceeds to repay a $700 million term loan and reduce revolving-credit borrowings.

From July 1 through Thursday, Teleflex repurchased $350 million of stock: 2.7 million shares at an average $128.96 each. Those purchases comprised a $250 million accelerated repurchase and $100 million bought in the open market, leaving $400 million available under its authorization.

The annual earnings outlook incorporates $600 million of completed buybacks, including $250 million in the second quarter. It excludes further potential repurchases, additional debt repayment and expected service-agreement benefits from the pending business sale.

President and CEO Jason Weidman tied integration, divestitures and organizational changes to the next year's outlook: "We expect these efforts to deliver a meaningful step-up in adjusted earnings per share in 2027," he said.

Teleflex continues to work toward a year-end sale of Acute Care and Interventional Urology to Intersurgical. Regulatory approval could move the closing into 2027, the company said.

Sources

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